Nissan Could Cut North American Production by 20 Percent

May 29, 2018—Nissan Motor is slashing production as much as 20 percent in North America to cope with a U.S. automobile market where sales declined for the first time in eight years in 2017, Nikkei Asian Review reports.

Cuts are already afoot at two assembly plants in the U.S. and three in Mexico. Workers will stay home an extra two or so days a week. Lines will slow to the point where output drops roughly 10 percent to 20 percent on the year by summer.

Employees will not be let go, and production lines will not be completely halted. But parts suppliers have been informed of the reductions, which are likely to temporarily impact their earnings. Nissan's cutbacks are expected to wrap up by autumn, when the redesigned Altima sedan launches.

The U.S. accounted for 28 percent of Nissan's worldwide sales of 5.77 million units for the year ended March 31. The production cuts are projected to deflate U.S. sales by 3 percent to 1.55 million this fiscal year.